Chancellor takes a softly-softly approach to easing Covid-19 crisis support
by Larry Elliott from on (#5431H)
Rishi Sunak's choice speaks volumes about his view of Britain's likely pace of recovery
Paying workers up to 2,500 a month to kick their heels at home doesn't come cheap. The cost to the exchequer of paying 80% of the wage bill for furloughed staff is one of the factors likely to push state borrowing to record peacetime levels this year.
Yet getting shot of the scheme is proving mighty hard for the government. Speculation that Rishi Sunak would make companies pay 20% of the wages of furloughed employees from August proved to be wide of the mark. Instead, the chancellor has opted for a much more cautious, step-by-step approach, and at the same time extended support to the self-employed for a further three months.
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